Paytm Layoffs Update: Centre Summons One97 Communication Management Over ‘Forced Termination’

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Paytm, the digital payments giant, is back in the spotlight due to recent layoffs. The Centre has summoned the management of One97 Communication, Paytm's parent company, following reports of ‘forced termination’ of staff. The Regional Labour Commissioner of Bengaluru issued the summons after multiple complaints were lodged with the Ministry of Labour and Employment regarding alleged violations of termination rules and lack of compensation.



Allegations of Forced Termination

Employees have accused Paytm of terminating them without prior notice or severance pay. According to a report by Moneycontrol, the company referred to the layoffs as a “difficult transition” and stated that it is considering all feedback. The affected employees claim they were coerced into resigning without any form of compensation.

Response from Paytm Management

Vijay Shekhar Sharma, Paytm's founder, acknowledged the emotional impact of the layoffs and admitted that the company could have handled the situation better. The company has expressed willingness to address the grievances of its employees.

Ongoing Investigations

The Labour Ministry is investigating the complaints, and the outcome could have significant implications for Paytm’s labor practices and future operations. This situation has put Paytm under scrutiny, highlighting the importance of adhering to labor laws and treating employees fairly during transitions.

Paytm Payment Services' Overseas Funding Approval

In related news, Paytm Payment Services, a key subsidiary of Paytm, has received initial approval for overseas funding of Rs 50 crore from China. However, final approval is pending from the Ministry of Finance, led by Nirmala Sitharaman. If approved, Paytm Payment Services will be able to resume normal operations, potentially stabilizing the company's financial position.

Conclusion

The ongoing issues with layoffs at Paytm underscore the need for transparent and fair employment practices. As the Centre investigates the allegations, the outcome will be crucial for both Paytm’s reputation and its adherence to labor laws. Meanwhile, the potential approval of overseas funding for Paytm Payment Services offers a glimpse of positive news amidst the turmoil. 

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